Our Big Fat Greek Bailout
“Keynesians of the world unite” should have been the slogan for the meeting held on Tuesday between President Obama and German Chancellor Angela Merkel. Obama knowing full well that the economy is not doing well has decided to pin the blame on what he calls foreign headwinds. These foreign headwinds Obama is referring to is the current economic situation of Greece. At this glorious Germanic occasion Obama announced “we have pledged to cooperate fully in working through these issues, both on a bilateral basis but also through international and financial institutions like the IMF.” Furthermore Obama has said that if Greece would default on their debt would be disastrous. So the solution that these two economic masterminds came up with was to give Greece another bailout.
Currently Greece has reached record highs in unemployment. Greeks Jobless rate in March is at 16.2%, which is an increase of 0.3% from February. In an attempt to pull their economy out of the doldrums Greece has implemented new austerity measures to try to combat the increase the debt-ridden country. These new measures containing a decrease in government spending and tax hikes have led to high levels of anger through the Greek population.
Yet it must be asked what would another Greece bailout mean for America? Another bailout of any kind would in one way or another take money away from each American citizen. Since the government doesn’t have the money to spend in the first place they must get funds either through increasing taxes, borrowing more money which would increase our national debt, or to have the Federal Reserve crank up the printing press which would decrease the value of our dollar. Also this would undermine our national sovereignty because if we give more money to the IMF America won’t be able to stipulate how our tax dollars will be spent, not that we should give them money in the first place. The reasons why we should not bail out Greece or anybody for that matter is because the end results are, resources get misallocated, our economy gets weaker, and the American people suffer.